in egypt there are signs mohammed morsi might be giving in to opposition pressure after tens of thousands converged on the presidential palace but dialogue remains a distant prospect. i would be highly skeptical of the intelligence rendered by the one hundred forty plus billion dollar us intelligence community as to weapons of mass destruction in the possession of another country period the u.s. and britain are increasingly building up a case against syria claiming it's preparing to use chemical weapons because of the iraq lesson has been. changed. for the rebels despite fears that they could fall into the hands of radical islamists. plus a tragic turn in the coverage of the u.k.

with the suspected suicide of a nurse the focus of a media frenzy which some say has gone too far. around the world on the screen online international news and comment live from moscow the egyptian opposition is growing pressure on president morsi is starting to yield results following days of protests culminating in friday's massive march on the presidential palace signs of a period that the islamist leader might give in to one of the key demands the controversial referendum on an islamic led constitution could be delayed but that still would not guarantee a resolution to the standoff as current base reported troop explains. the president may see the referendum postponed here in egypt provided the opposition forces open dialogue with the president without preconditions which

people see on the streets as meaning without the rest of their demands here the presidential palace doesn't say spontaneous sitting overnights in protest of this controversial decrees that president morsi released two weeks ago which they see as a power grab and of course the constitution which is going to referendum next week stacey's dismissed as it was written by an islamist dominated constitutional assembly overnight scenes here were tense as the mission brotherhood's gathered in nearby mosques to the presidential palace and there were rumors that they would march on the city and how that never happens is the scenes were very calm after we witnessed extraordinary scene yesterday when hundreds of thousands of protesters just outside the presidential palace in front of republican guard barricades storms the republican guards who essentially stepped aside and let the. protesters through to the gates of the presidential palace to continue their protest right in front of the gates shouting leave morsi leave and against the constitution very emotional

scenes here on the streets meanwhile the opposition forces in the national salvation front have said they will not budge they have a list of key demands which includes the referendum being stopped and also because . this contentious decree being revoked they said they will not speak to the president and until he listens to the demands of the moment the president is sticking by his guns to really we're still seeing a deadlock here in egypt. is back in the picture in its first statement since the protests erupted the military warned of disastrous consequences if the crisis is not resolved not to let that happen but some analysts fear the army is closer involvement would mean the country plunging deeper into political chaos. at this point he should have known that gathering the frost and good will of the egyptian people is more important than any specific action he wants to accomplish so things

are really very dangerous in egypt now and and i hope the violence one fall all these kind of confrontations in front of the presidential palace my fears are that the military may step in and clear clear the deck for themselves i don't think it's dangerous in terms of morsi using tremendous power to crush and kill thousands and thousands of egyptians i don't think he will go that route so my fear is only from the military and military have a history of doing those things in egypt or elsewhere. and public outrage is also spilling on to the streets of kuwait later the report from what was once thought to be one of the more stable gulf monarchies now seems to be swept up by the next chapter of the arab spring. still to come but first british police are still giving no details about the death of a nurse who was fooled by a prank telephone call about the pregnant duchess of cambridge and certainly only

adds more speculation over the already headline grabbing story of britain's royal baby which has now taken a tragic twist as artie's party boy reports some are suggesting the frenzy had already reached a feverish level of media coverage. all this taking place against a backdrop of intense media speculation a real media circus the whole pos week over news that kate middleton is pregnant we've seen discussions about whether or not kate could be having twins if kate has twins which of the babies potential babies would be the ones succeeding to the throne if it was if they were delivered by c. section it would be the physician potentially deciding it is the successor to the british want to kill we've seen bookmakers taking bets on what this baby might be called predictions that this will already be the most popular name in britain as soon as the name is announced all this you know when we've got real news taking

place in syria political crisis in egypt and. the press much more interested in kate middleton's acute morning sickness i'm joined by cost curve in the studio here with me he's a london journalist who's been following the story cost a tragic wake up call to the sri yeah. it certainly should be. very very tragic case the circumstances under which are still under investigation by the police but the real issue is of course the media which blew itself out of proportion i believe the daily mail which is still going to be a story broke the daily mail devoted fourteen put its first fourteen or thirteen pages of the newspaper one of the most read newspapers in the country to the royal baby they've just had the leveson inquiry and a damning report about the state of the british media and now this you know is this more criticism for the british media in the way it's following these stories while there is other news taking place and internationally well again it should be but it

isn't because the media is trying to deflect attention away and is calling for the hanging of the two great radio d.j.'s the media is not questioning the monochord coverage they are devoting to your family and what consequences the abuse may have been in the individual's life if we had. a media which was more reasoned with this when that happens if the suicide is actually proven to be related to you to what happened today you have it now the jews and duchess of cambridge have said that deeply saddened by the news of the tragic news of this the death of the royal not so what should have been a joy for a pregnancy announcement has been you know some say because of the disproportionate media coverage chimed in to a very tragic news story. just a reminder you can always check out his twitter feed for more news stories on the bureau's reporting the protests in the city against. the activists threaten to shut down the company shops over the negligible corporation taxes it's paid in britain despite huge revenues more videos and pictures from the day of action on the page

right now. britain has joined the u.s. in claims they have intelligence suggesting syria might be preparing to use chemical weapons western countries have said the use of such weapons would trigger foreign military intervention the situation is increasingly drawing parallels with the run up to the invasion of iraq ten years ago he has spoken to former u.s. state department chief of staff lawrence wilkerson who was behind report laying out the case for the iraq war and i asked him what he thinks is next for syria and help justifiable to fiza about its chemical. i would be highly skeptical of any intelligence rendered by the one hundred forty plus billion dollar us intelligence

community as to weapons of mass destruction in the possession of another country period i'm not violating any great confidence or any great prohibition in the intelligence community to tell you that we've known for years years that syria has chemical weapons stockpiles just as iraq had chemical weapons stockpiles for a while but the fact that president assad would be moving them around and preparing them for use against his own citizens within his own territory i frankly find prosperous i think that if we were to intervene in a substantial way that is to say we were to put troops on the ground marines soldiers and so forth and we were to do in syria what we began to do in march of two thousand and three in iraq it would be even worse than iraq i think also that it would be again a back door as a war into iran which is the as you well know the real threat that we've been

putting out there for years now so i think you're looking at a combination here not just syria i think ultimately the target is iran. and further efforts against president assad britain is looking to press its european partners to review the arms embargo on syria lebanon says it wants to help rebel groups via greater aid and shipments of military gear but is not expense the european military aid could end up in the wrong hands. well the u.k. foreign office has confirmed this week britain is going to be thinking an amendment to the arms embargo on syria making it easier to help the opponents the syrian president bashar al assad now a foreign office official has said that the practical support is likely to include training and non-lethal equipment britain want to play a role in syria after the other side regime falls because small business. they would like to be involved. so therefore. wants to back the winning side.

there will provide increasingly more weapons the trouble for. the cause i did to far eventually which side with lucian is you do support. what will be the interests of the militia. here when they take power because the danger is there is new. leader of the opposition because at least twenty. if but leaves. and city and then for the part. these twenty in fact fight one another for the end of the day is going to be the syrians are going to decide not britain france the united states now currently items such as body armor and night vision goggles a cool sub in that elms and ball go and say the amendment would allow items like that to be deployed of course throughout the conflict in syria we've seen an

increasingly fragmented opposition say there is a lot of concern that the supply of any weaponry could well end up in the wrong hands numb the last person will be pushing ahead this week seeking that amendment. to the head tens of thousands of palestinians well from. the leader of the masses in gaza and calls on his supporters to keep up the resistance real see what this means for the region and the world. the russian city of sochi is gearing up to host the next winter olympics with preparations now in full swing all that is on the way after the break. looking at some docs you simply do not believe they come speak and goodness how they can wrong oh. it's an international sled dog race with

those driving the dogs. coming from as far away as australia canada and the u.s. i come to russia and everybody is so very friendly they welcomed me with open arms and the scenery is so beautiful it's very much like a lot and so i felt at home the first blood joke was brought here from australia and now must have come to this remote russian village to take part in the race it's not surprising they love it this trail ira mazie. but even more amazing is the story of how racing first started here a toll it wasn't the tough mushers of sled dog racing who set the trail ablaze but a nun and for all friends who brought their idea to life. five years ago. built a dock kennel in the village kids from the local open age came around to take care of the dogs and one day they state their life might seem extreme to some the boys

wake up at six to feed to the dogs before school in the evening they spend up to three hours training their full legged friends but smother her schedule also encourages her kids to become depth hands on the computer and internet the boys regularly update their websites and they're in touch with the business while the twenty four seven on the phone itself but children are the most important thing my own interests not play any role anymore and regardless of whether parsky has huskies window race or not she hopes the competition will take place in the village next year. but called these dogs and the children it really is not the weaning but truly just the taking part that counts.

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you know out here in moscow crowds are rallying in kuwait capital against the parliament elected last week and a disputed amendment to electoral law protesters say the amendment changed the voting rules to favor pro government candidates and are seen photos taken by our correspondent lucy coming off one of the oldest gulf monarchies kuwait has been shaken by a series of political crises its rulers crackdown on protesters and block the opposition's political moves developments largely unnoticed in the western world but all of this is energizing the resistance even more as lucy explains. and you don't rises over kuwait tensions are simmering beneath the calm as those seeking political change are forced to wait another day. has turned a one sleepy community into a powerful nation although it's been ruled by the same family for more than two centuries kuwait is widely seen as the most imma craddick of the gulf monarchies

get some young kuwaitis beg to differ there is a few countries. but. it's just. the government says that it is doing all it can to maintain stability supporters of the ruling family point out that it boasts a robust public life with electoral traditions and a vibrant parliament for youth activists. that's not enough the opposition consists of an unlikely alliance of youth groups hard line islamists and local tribes who are ramping up their calls for reform increasingly they've taken their message to the street for peaceful demonstrations have been met with an iron fist and we were beaten up by. the special forces. and after the march. on the street just being detained in front of the critics of kuwait's government claim it turns

a blind eye to allegations of widespread corruption and the use of security forces to crush dissenting voices ask for the rule of law so we don't have a law we have a law that is being used whenever the government feels like using the riffs here began years before the arab spring protests but have intensified over a series of political crises the opposition dominated parliament was dismissed earlier this year following a row with the ruling establishment the electoral law was then changed prompting many to boycott kuwait's most recent parliamentary vote the resulting divide is unlikely to be bridged anytime soon and it leaves the monarchy with an energized opposition eager to make itself heard i was actually. this was reading recently for a car that was. down what people are trying to say by taking the streets up there are. a little system they want more freedom. justice one show us that load isn't enough to sit in. the usa

in the future and how that future plays out well write the next chapter of the arab spring to seek out the no forty eight. in gaza more than one hundred thousand people have joined celebrations marking the twenty fifth anniversary of a mass the crowds were addressed by the exiled leader of the islamist group khaled mashal who's on his first visit to the strip for decades he reiterated the mission of liberating palestine and defying israel and urged arab countries to support the resistance in his speech also stressed the importance of reconciliation with the masses rival party fatah whose representatives were invited to the event the celebration included a military dimension with a massive model of a medium range rocket a centerpiece of the event political analysts show me no one he told r.t. about its significance. i think the rockets are a sign of two things one that all options are back on the table that the military

option for paul seems to resist militarily is now a possibility again the second reason the rocket count is i think it's a sign that deterrence has been reestablished of course it makes the israelis nervous they don't like to be sitting there and they don't like to be told that they are the defeated party this is you know fairly unprecedented and except for of course hezbollah's defeat of israel in two thousand and six they'll be dying to prove themselves once they can't because every day that the conflict went on and of amber it made in iran and palestinian islamic jihad and hizbollah are looking better and. the that tyreese the u.s. u.k. and france look worse because you know these are people who are time but arming the resistance in syria and pushing forward but not willing of course to arm the resistance in gaza so israel has had to sit tight or risk

a lot more potentially. to some other world news now egypt has arrested a suspect accused of involvement in killing the u.s. ambassador to libya in september egyptian intelligence sources say the man is believed to be a member of a militant group the suspect has also been accused of transporting weapons from libya to egypt. the former italian prime minister silvio berlusconi is announced he is to run for office in next year's parliamentary elections the flamboyant seventy six year old tycoon says he wants to lead the debt ridden country out of the financial crisis he stepped down in disgrace last year with italy on the brink of financial disaster and since been convicted of tax fraud. around two thousand british protesters have rallied outside belfast city hall in northern ireland over the local councils vote to remove the u.k. flag from the building police officers been injured in the clashes it was trouble when the vote was first announced last monday and also on friday when it police

officers were injured and at least thirteen people detained after riots politicians have appealed for the protests to stop. this weekend the world's best figure skaters are testing the olympic ice in russia's resort city of sochi countdown is in full swing with just over a year left until the winter games what is really a question of are reports from the next olympic city. there is just over a year until the actual winter olympics get underway but still this toss competitions give us a chance that the construction is almost over and that the city will soon transform into the world capital of the winter games now this weekend is all about pushing the new venue through their paces of course all eyes are right now at this iceberg a rina ice rink which is right behind my back it's a new twelve thousand rink which is part of a cluster of ice sports venues which has been or are still being built along the black sea coast now its brand new sparking doors have just been opened for numerous

competitors from around the globe and it seems no matter how they would actually do at the event they will sure go back home pleased with old this new facilities now and offer this weekend is all about testing the new venue yes however it also provides an exciting taste of what's still to come. well still to come here on our two lower list looks at how washington plans to deal with the impending fiscal cliff and what will happen if the white house and congress fail to find a solution capital account is on its way from washington shortly and more news from moscow thirty five minutes from now.

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the sight. of. the. good afternoon welcome to capital account i'm lauren mr here in washington d.c. these are your headlines for friday december seventh two thousand and twelve is jobs day u.s. jobs numbers for november came in better than expected with the b.l.s.

report showing one hundred forty six thousand jobs were added much more than expected and the unemployment rate fell to seven point seven percent but why did the rate went down because more people left the labor force and when you look at the lack of exciting increases in wages that also comes out in this report what should we really make of it all and what does it portend for housing which our guest barry has mortgage exact thinks has been a bright spot for the economy we'll hear from a plus brace yourself the f one c meets next week and some are forecasting the fed may announce more bond purchases after they do so so what is the antidote to unhinge money printing and centrally planned price fixing could gold play a role john butler is here to counter some claims we heard on this show earlier in the week and our trip down memory lane with author kevin phillips on his account of seven hundred seventy five lead to some questions on the economic history of the time of the war will respond to your feedback let's get to today's capital account

. it's that time again next week the federal open market committee meets and some anticipate we could see an announcement for more bond purchases after they do so to allegedly continue trying to boost the economy to help with that weak growth we keep saying but is the fed's manipulation of interest rates and involvement in the economy actually doing the opposite to growth is it hurting growth to lay it out john butler is here he's founder of and for a capital and author of the book you see here the golden revolution and he is here to spell it out so first of all mr butler thank you for being on the show thank you

learned pleasure yet it's always a pleasure and i want to start with this fascinating chart because this is something that you included in your recent writing and it is really a lot of ok it is a u.s. domestic investment net of depreciation so essentially as you explained it to me this shows that businesses aren't investing enough to keep up with how the country's capital stock is depreciating it sounds alarming but what exactly does this mean well it means that growth in future that is not just cyclical you but structurally that is potential growth is going to be weaker now the capital stock is the engine is the factory is the motor is all of the above for the economy and if it shrinking it produces less the problem is the united states economy in recent years has been consuming its capital stock that's like burning furniture to heat the whole.